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    • ON: Mon Mar 10th 10:46 AM
      Commented on:
      Nowhere Near a Real Estate Bottom
      Some truth in what stated but I wish it were that simple....changing demographics, shifting business locations (since the industrial revolution, now called "globalization&qu... building costs, energy costs, and on and on...not everybody has an adjustable rate mortgage nor did everybody buy at the top of this most recent bubble. It wasn't too many years ago that 7%+ was considered an attractive mortgage rate...so not everyone is jumping ship from their home...as D said "theres no place like home". My observation and personal experience is that the unwillingness of banks to currently loan $ for new mortgages at reasonable rates is based on fear (their risk is higher as they cannot off load the paper through wall street). Until they start creating liquidity via loans to us indebted common folk the housing market is FROZEN for the resale market....people who change jobs can not move to other areas of the country, people who retire cannot buy a condo or smaller house, etc. A bottom is near: The vultures are now raising pools of private capital to buy up the cheap (paper) houses in quantity and resell them to the little people...condo speculation is another subject that should be left to rot on the vine.
      The Fed could put an end to the mortgage debacle by buying up the marked down mortgage paper at 20 cents on the $, putting it in the US Treasury and selling it into the market a few years from now at a profit. This was done successfully during the depression successfully. Cramer recommended this last week; Allan Binder a few weeks ago. Unless it happens business recession will deepen.
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